PLease help on these 5 True or False Accounting questions?
PLease help on these 5 True or False Accounting questions?
1.Recording business costs in terms of hours required to complete projects in an application of the unit of measurement concept.
2.The capital account is an owner?s equity account.
3.If two amounts are recorded on the same side of the accounting equation, the equation will no longer be in balance.
4.When a company pays insurance premiums in advance to an insurer, it records the payment as a liability because the insurer owes future coverage.
5.When items are bought and paid for later this is referred to as buying on account.
Answers:
terrified by spiders: 1.Yes
2.Yes
3. Yes
4. No. It's prepaid insurance.
5. It's accounts payable, something the company owes
(I think. I'm an accounting student myself.)
2008-09-01 12:42:36
2008-09-01 12:42:36
Nunya B: 1. True-the hour is the unit of measurement. Saying 'give me $500 when this is done' is not applying the concept.
2. True
3. False-If I am interpreting this correctly, there is almost always more than one value recorded on either side of the accounting equation. As long as there is an equal debit or credit on the other side, the equation will balance.
4. False -No, this is a prepaid account, an asset
5. False-This is accounts payable
2008-09-01 12:44:00
2008-09-01 12:44:00
Chosen Answer
jfcruzr: 1. F, (there is a lot more to cost accounting than just man-hours) 2. F. (capital can be cash, fixed assets, equity and more) 3. T (if the 2 amounts refer to the same line-item) 4. F (once paid, it is a prepaid item) 5. T
2008-09-01 12:45:43
jfcruzr: 1. F, (there is a lot more to cost accounting than just man-hours) 2. F. (capital can be cash, fixed assets, equity and more) 3. T (if the 2 amounts refer to the same line-item) 4. F (once paid, it is a prepaid item) 5. T
2008-09-01 12:45:43